GameStop CEO, Ryan Cohen, has recently reached a $1.1 million settlement with the Federal Trade Commission (FTC) over allegations of violating customer privacy. This issue arose from his previous venture, Chewy, an online pet food retailer. The FTC claimed that Chewy had resold customer data to third-party companies without proper consent, which is a breach of the Restore Online Shoppers’ Confidence Act.
The FTC maintains that Chewy, under Cohen’s leadership, engaged in deceptive business practices by enrolling customers into recurring shipments without their explicit consent. The settlement does not constitute an admission of guilt but is a resolution to avoid further litigation. It’s important to note that this incident and the settlement are in no way related to Cohen’s current role as the CEO of GameStop.
Cohen’s settlement with the FTC is a reminder to all online businesses about the importance of transparency and trust in their operations. Consumers’ privacy and data protection should always be a top priority. Online retailers must ensure they obtain explicit consent from their customers before enrolling them into recurring shipments or sharing their data with third parties.
